Why You Should Hire a Real Estate Agent

Buying or selling a home is a major milestone in life and one that can be daunting. With abundant online information, it's tempting to think you can navigate the real estate market solo. However, the reality is that the process is far more intricate than what meets the eye. 

This is where a real estate agent steps in to make your life easier. Let's delve into why hiring a real estate agent is crucial for a smooth and successful home buying or selling experience.

What Is a Buyer Agent?

Picture this: You're on a quest to find your dream home but lost in a sea of listings and open houses. Enter the buyer agent, your trusted guide in the real estate landscape. A buyer agent is a licensed professional who represents you, the buyer, throughout the home buying journey. They're not just there to show you properties; they're your advocate, your negotiator, and your confidant in this complex process.

How Does a Buyer Agent Help Home Buyers During the Home Purchase Process?

1. Find Properties to View: 

Your buyer agent listens to your needs and preferences and then scours the market to find properties that match your criteria. They have access to the MLS database and insider knowledge to ensure you don't miss any hidden gems.

Once potential homes are identified, your agent arranges viewings and even informs you about upcoming open houses, saving you time and hassle.

3. Submit Offers: 

When you've found "the one," your agent crafts and submits offers on your behalf, navigating the intricate paperwork and legalities so you can rest easy. 

4. Negotiate With the Listing Agent: 

Negotiation is an art, and your buyer agent is the master. They advocate for your best interests and work to secure the most favorable terms for you.

5. Manage Your Paperwork: 

From mortgage applications to title paperwork, your agent ensures that every document is in order, sparing you from drowning in paperwork.

6. Make Recommendations for Other Real Estate Professionals: 

Need a home inspector or a real estate attorney? Your agent has a network of trusted professionals at their fingertips, ensuring you have the best team by your side.

On the other hand, we have the listing agent, also known as the seller's agent. Their primary responsibility is to represent the seller throughout the home-selling process.

How Does a Listing Agent Help Sellers?

1. Preparing Your Home to Sell: 

Your listing agent will advise you on maximizing your property's value, from minor touch-ups to major renovations.

2. Staging Your Home: 

First impressions matter. Your agent helps stage your home to appeal to potential buyers, ensuring it shines in listing photos and open houses.

3. Professional Listing Photos: 

Listing agents understand the power of visuals and ensure your home is presented in the best light possible through professional photography. They may hire a professional photographer or even take your listing photos themselves if that's in their skill set. 

4. Deciding on a Price: 

Through a CMA, or comparative market analysis, your agent will review homes nearby that are currently on the market, pending, or have recently sold. This will help them set a competitive price for your home, attracting the right buyers.

5. Marketing Your Home: 

From "for sale" signs to online listings, your agent employs various marketing strategies to showcase your property to interested buyers. Your agent may also recommend scheduling an open house and setting an offer deadline.

6. Closing the Deal: 

Your agent will review each offer and help negotiate terms to get you the best deal. They will also handle the complex closing paperwork, ensuring a smooth closing.

How Do Agents Get Paid?

You might wonder how these real estate superheroes are compensated for their services. Most agents earn commissions, typically a percentage of the home's sales price (3%-6%), paid by the seller. However, recent changes in the industry are shaking up traditional payment structures. 

Historically, sellers have been the ones to pay the listing agent who would then split their commission with the buyer agent (with the buyer usually not paying for either agent). But the recent result of the $875 million class action lawsuit against the NAR (National Association of Realtors) filed by unhappy home sellers is balancing this system out. As of August 2024, rules will be instated which basically require that buyers pay for their buyer agent and sellers pay for their listing agent. No more split commissions paid solely by the seller. 

However, this doesn’t mean that the seller can’t still offer buyer credits which could theoretically be used by the buyer to pay their agent. A lot is still up in the air right now as rules shift, but we will know more about payment structures in the following months. Just be sure to clarify with your agent!

Questions to Ask When Searching for an Agent

Finding the right real estate agent is key to a successful transaction. Here are some essential questions to ask potential buyer's agents:

• How long have you been a real estate agent?
• What's your schedule and availability?
• How many clients are you currently working with?
• Do you have any areas you specialize in?
• How well do you know the neighborhood I'm looking to buy in/sell in?
• What's your list-to-sales price ratio?

While the idea of DIY-ing your real estate transaction may seem appealing, the reality is that it's a complex process. Whether you're buying or selling, a real estate agent can be your trusted partner, guiding you every step of the way. So, before you embark on your real estate journey, speak to a few agents to determine the best path for you.

Speak to a Home Loan Specialist for an agent recommendation and to establish your budget first (highly recommended!):  Click here to get started!